Chinese electric vehicle (EV) giant BYD is restructuring its European operations in a move to achieve sustainable success after a rough start caused by strategic missteps slowed its growth in the region.
BYD entered the European market with high hopes of replicating its domestic success in China. The company is especially popular in the Chinese and emerging markets, surpassing Tesla as the world’s top EV seller.
However, that hasn’t been the case since the company entered Europe. It is now reportedly taking lessons from the market and working to resolve the challenges it faced in the region.
Early ambitions and missteps in the European market
Market watchers say BYD has struggled in Europe due to a lack of solid market-specific strategy and failure to adapt to local preferences.
One of the visible challenges that has hindered the automaker’s European market penetration is its poor dealership network. BYD dealership locations in Germany were 27, which is relatively fewer than what it needed to gain meaningful traction in the continent’s largest auto market.
Another mistake that became apparent to BYD was the inexperience of the previous leadership team regarding the European automotive space and consumer behaviour. Initially, BYD didn’t recruit experienced professionals familiar with the European market, rather relying on a Chinese management that tried to run the same playbook that helped BYD become successful in China. The automaker soon found that the strategy did not transfer very well.
Another BYD misstep is its offering of fully electric cars without the option for plug-in hybrids, which many European consumers favor due to charging infrastructure limitations and range anxiety.
BYD plans to revise its European rollout
To correct course, BYD has made some changes and is aggressively expanding its dealership network with plans to hit 120 locations by year-end.
The automaker has also hired top-tier executives with extensive experience in the European market. Leading that charge is the automaker’s European special adviser Alfredo Altavilla, a former Fiat-Chrysler executive, and other key executives.
Altavilla reportedly advised Wang Chuanfu, founder and chairman of BYD, to change the company’s pure EV strategy and explore hybrid models due to slow adoption and the need to educate customers in the green transition.
Since then, BYD announced in December 2024 that plug-in hybrid models would be rolled out and at the core of its strategy. The executive also called it a stupid move to go against consumer preferences by offering only EVs.
It has gone on a hiring spree, poaching auto executives from rivals such as Stellantis with attractive compensation packages and promises of long-term leadership roles. Stella Li, a seasoned executive and the company’s global vice president, has been appointed to lead the European division and drive the turnaround efforts.
BYD may already be reaping some dividends from its restructuring as it sold over 37,000 vehicles in Europe in the first quarter of 2025, which is more than triple its sales from the same period in 2024.
However, challenges, such as increasing competition from other Chinese competitors, such as Geely, Chery, Changan, and a few others who have also recently entered the European market, continue to linger.
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